Diana vetos budget, citing Valley View funding

Friday

Nov 30, 2012 at 6:46 PMNov 30, 2012 at 6:50 PM

CHRIS MCKENNA

GOSHEN - Orange County Executive Ed Diana announced his expected budget veto on Friday, arguing that the Legislature’s effort to fund the county nursing home for all of 2013 was fiscally unsound and would force the county to exceed its state-imposed limit on tax increases.In a letter released to the press at 5:01 p.m. on the day before his veto deadline, Diana accused lawmakers of basing their budget changes on shaky assumptions and suggested public pressure had led them to try to extend funding for the Valley view Center for Nursing Care and Rehabilitation.“We must not succumb to such pressures and influences by mortgaging the County’s economic future,” Diana said in his four-page veto message, addressed to Legislature Chairman Michael Pillmeier and Legislature Clerk Jean Ramppen.Diana, who has been pushing for 14 months to sell the nursing home to a private operator, included only one month of funding for Valley View in his 2013 budget proposal, hoping by February to have transferred the operation. But lawmakers voted 14-5 to adopt a series of amendments that aimed to sustain the home for a full year with no additional county taxes.Diana and his staff have taken a different view. In a memo distributed to lawmakers a week ago and attached to Diana’s veto message, Budget Director Neil Blair argued that the net result of the changes was a tax-levy increase that surpassed the state cap by $5.4 million — an act that would require special legislation.Diana called that an “unconscionable” tax-levy increase of 8.6 percent.Michael Anagnostakis, the Republican legislator who crafted the budget changes, contends Diana and his budget office have deliberately misinterpreted the Legislature’s intent by adding figures to ones they were meant to replace.“The executive’s office has purposely distorted the intent of the Legislature,” he said in a statement Friday. “How stupid do they think the people are? We replaced his budget; we did not add our budget onto his. Our budget did not raise taxes one additional penny, and the tax cap was not exceeded.”Diana also faulted lawmakers for adding $6 million in anticipated federal aid to the budget. Valley View’s supporters have long argued that the money is a sure thing and belongs in the spending plan, while Diana and lawmakers who support privatizing the facility insist the funding shouldn’t be budgeted until the county gets it.Diana also dismissed the Legislature’s assumption of major savings through contractual givebacks promised by the union representing Valley View employees, which have yet to be consummated. In addition, he took issue with their expecting the facility to collect more Medicaid with better billing.The Legislature has until Dec. 15 to decide whether to override Diana’s veto, but could do so as soon as Thursday, when its next regular meeting is scheduled.cmckenna@th-record.com